LKAB's New CEO Prioritizes Green Transition Over State Dividends
Johan Menckel, the new CEO of LKAB, announced that the state should not expect large dividends in the next five to ten years as the company shifts focus towards green steel production. LKAB plans to invest in the Hybrit sponge iron plant in Gällivare, which aims to reduce emissions by using hydrogen instead of coking coal. Additionally, the company intends to extract phosphorus and rare earth metals from mining waste. Menckel, who lacks a mining background, emphasizes the importance of making decisive investments for the future.
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Johan Menckel, the incoming CEO of LKAB effective April 1, indicated that the Swedish government should not anticipate significant dividends from the mining company in the coming five to ten years. This follows a record dividend payout of 12.7 billion kronor in 2021 under his predecessor.
LKAB is focusing on green steel production, particularly through the Hybrit sponge iron plant in Gällivare, which will utilize hydrogen instead of coking coal to reduce emissions. The investment decision for this project is expected to be made within Menckel's early tenure. Furthermore, LKAB plans to recover phosphorus and rare earth metals from mining waste to support battery technology and the green transition.
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